Hedge fund “Best Ideas” are not the Holy Grail of performance

Although lauded for their ability to outperform broader market indices, hedge funds’ “Best Ideas” do not excel relative to the rest of their portfolios, according to a study produced by Epsilon Asset Management, a quantitative investment firm, in collaboration with New York University.

Epsilon partners Faryan Amir-Ghassemi and Michael Perlow co-authored the report – “Hedge Fund Alpha and their Best Ideas” - with National Science Foundation award-winning assistant professor of finance and risk engineering Andrew Papanicolaou of NYU.